USD/CHF Daily Outlook

Daily Pivots: (S1) 1.0804; (P) 1.0850; (R1) 1.0909; More

USD/CHF failed 1.0897 minor resistance and retreated again. INtraday outlook remains neutral for the moment and consolidation from 1.0954 is still in progress. Another fall to 1.0760 might be seen but after all, downside is expected to be contained by 1.0650 support and bring strong rebound. On the upside, above 1.0897 will suggest that recent consolidation is completed and rise from 1.05909 is resuming for 1.1158/1740 key resistance zone next.

In the bigger picture, fall from 1.1963 is treated the third leg of the consolidation that started at 1.2296, which corrects the whole rally from 0.9634. With daily MACD staying well above signal line, such decline is tentatively treated as completed and hence, stronger rise is in favor to 1.1158/1.1740 resistance zone. Nevertheless, we'd favor that such consolidation is developing into triangle pattern and hence, upside should be limited by 1.1158/1740 initially and bring one more fall before completing the consolidation. However, break of 1.1963 will serve as the first signal that whole rally from 0.9634 is resuming.

On the other hand, note that a break of 1.0590 low will indicate that fall from 1.1963 is still in progress for 1.0366, or even further to 100% projection of 1.2296 to 1.0366 from 1.1963 at 1.0033 before completing the consolidation from 1.2296.

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